The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1887-06-24
COMPELLED TO CLOSE.


The Government Orders the Suspension
of the Fidelity Bank of Cincinnati-The
Connection of Its Officials with the Col
lapsed Wheat Clique the Cause of the
Action-Millions of Dollars of Liabili-
ties-Three Officers Arrested on Charges
of Fraud.
CINCINNATI, June p The Fidelity Ma
tional Bank was closed yesterday morning
by order OF Bank Examiner Eugene Pow
ell and was kept closed and guarded by
policemen within and without all day.
The board of directors met at seven a. m.
and were in secret session until noon.
Mr.. Powell announced to the direct.
ors that, owing to the impairment of
the banks resources, the Government
would take charge of it, and would APP
point receiver to wind up the business.
1t is said, unoficially, that the alternative
was given of continuing in business by a
reorganization which would leave out
Vice-President Harper, Cashier Bald win
and Assistant Cashier Ben E. Hopkins,
but that the directors were unable
to agree upon such plan, or were unwil-
ling to take the risk of run following
the interference of the Government The
outcome, however, was the appointment
the Metropolitan National Bank, receiver,
and he was placed in charge of the banks
affairs.
The liabilities of the Fidelity Bank ex.
elusive of capital stock are about IS, 500,
0O0 The deposits amount to 81, 500, 600. A
conservative director says it is his opinion
that the depositors will get their money in
full.
Vice-President E. L. Harper, as a re-
suit of this action, has made an assignment
of his rolling mill in Newport KY, to his
superintendent, Adam Wagner, without
preference creditors. The estimated
liabilities of Harper are S2,000OO0 The
assets, counting his bank stock at par, are
about 81 900, 900, as estimated by himself
few days ago
The Union National Bank of Cleveland
brought suit in attachment yes terday
afternoon against the Fidelity Bank to re-
cover SCI, 131, asserting that the defendant
| frauduIently incurred the obligation for
which the suit Is brought 1t was only a
week ago that the Fidelity Bank sent out
a circular denying the charge of an anony-
| nous circular that it had speculated
in wheat. In that circular the
officers said: awe are doing a
larger business than ever, and our depos-
its have reached this day the highest
point in our history" After saying that
it allowed 215 per cent. interest on daily
balances calculated monthly, and made no
charge for exchanges the circular SAID
1--WE have the largest capital, the largest
surplus and the largest deposits Of any
National bank in Ohio"
There does not seem to be any evidence
discovered to prove these statements were
not then true. The depletion of the sur
plus by the withdrawal of deposits has
been since that time. So far as known
the Bank Examiner did not base his action
on the depletion of the funds, but upon
the violation of the National Banking
law. This was shown by the fact
that at four o'clock yesterday after.
noon, upon afidavits drawn by Assist,
ant United States District Attorney J. E.
Bruce and sworn to by Bank Examiner
Powell, Deputy Marshal Pohner went to the
Fidelity Bank and arrested Vice President
E. l.. Harper Cashier Ammi Baldwin and
Assistant Cashier Benjamin E. Hopkins.
They were taken before United States Com
missioner Hooper, where they gave bail
for future appearance. Mr.. Harper's bond
was fixed at SIS, 900, and the bonds of the
others at $4,000 each. The affidavits
charge that Harper misapplied the funds
| Of the bank, issuing on the 18th two certit.
Gates of deposit for 100000 and $500, 000
with intent to defraud and without author
ity from the directors. The atfidavits
charge that Baldwin unlaWfully issued q
draft for $4,000 on June 13, and thai
Hopkins on June Is unlawfully issued q
draft for $500, 600. These affidavits follow
the language of section 500 of the United
States statutes. The penalty prescribed
therein is Imprisonment in the penitenti-
airy for not less than five years nor more
than ten.
The action of the Government authori-
ties finds very general commendation, al.
though it appears to mean hopeless ruin to
three hitherto honored business men.
There is no doubt that the transactions
referred to in the af1idavits relate to the
recent wheat deal in Chicago. j. w. Wilt
shire, who is a large stakeholder in this
bank, and who was concerned in the wheat
deal, has transferred to E. L. Harper d
large number of pieces of real estate on
Walnut Hill and Mount Auburn. These
Mr.. Harper has transferred to the Fidelity
National Bank.
The Fidelity National Bank was formed
out of the Fidelity Safe Deposit Company,
its stock rising almost at once to $50. Its
last statement, made May IS, 1887, showed
loans and discounts of 81, 300, O2125; United
States bonds, $40, due from private
banks and bankers, S725, 592 10; other re-
sources, s2,517, 533 &c Its individual de-
posts were then 81, 3S7, Al 79.
Everywhere the one subject of CONVEX
sation is the failure. 1t is generally be.
lieved that the president and directors
knew nothing of the crooked doings Of the
accused officers. The bankers of the city
are cheerful None expect any trouble.
They say this result has been expected
and they are prepared for it.